Secondary markets - financial markets, Finance Basics

Secondary Markets - Financial Markets

Economic Benefits or Role of Secondary Markets in the Economy are as:

1. It provides people a chance to buy shares therefore distribution of wealth in economy.

2. Enable investors realize their investments via disposal of securities.

3. Raises diversification of investments

4. Develops corporate governance through separation of management and ownership.This raises higher standards of accounting, and transparency and resource management.

5. Privatization of parastatals as like US Airways. This provides individuals an opportunity for ownership in large companies.

6. Parameter for companies and health economy

7. Facilitate investment opportunities for small investors and companies.

Posted Date: 2/1/2013 12:40:13 AM | Location : United States

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